Bahrain's National Bureau of Revenue has published new guidance on how to calculate the market value on related party transactions as part of the VAT Technical FAQ on the Value of Supplies.
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VAT should be calculated based on the market value for supplies between related persons where both of the following conditions are met:
- If the value of the supply is lower than the market value
- If the customer is not entitled to deduct the input VAT in full
The market value is the fair price tra…